Pre-screening, screening, post-screening, strategic
What is ambiguity effect?
Ambiguity effect is a cognitive bias that describes how you tend to avoid options that you consider to be ambiguous or to be missing information. You dislike uncertainty and are therefore more inclined to select an option for which the probability of achieving a certain favorable outcome is known.
Example situation hiring process.
When someone only worked at unknown companies you will most likely perceive the decision to hire this person as less safe than the decision to hire someone who worked for well-known companies. Also, you likely prefer hiring someone with a ‘proven’ track record rather than someone with the potential to do well. This is also why most companies still work with CVs, although they know that it is not the best predictor of job performance.